Transformation doesn’t wait – and neither can your cash.
In today’s environment of rising capital costs, fractured supply chains, and intensifying sustainability commitments, large organizations face urgent pressure to fund strategic change. But while many instinctively reach for structural cost reductions or long-term investments to support their transformation strategies, they frequently overlook one of the most accessible and powerful tools at their disposal: Working Capital.
Based on a working capital study by Hackett Group across Europe, more than €1.3 trillion in working capital sits idl. In the DACH region alone, a recent analysis identified over €42 billion in untapped potential. Days Sales Outstanding (DSO) has climbed nearly 7% in just five years, showing that receivables are slow, while Days Payable Outstanding (DPO) are under pressure from new expectations around supplier payment fairness and new payment term regulations.
At the same time, the cost of capital has surged. With benchmark interest rates up more than 300 basis points over the past two years, funding transformation through traditional financing has become considerably more expensive.
Many finance leaders have long relied on traditional levers such as extended payment terms for suppliers, but this is often no longer enough today. Fragile supply chains and limited financial headroom for suppliers restrict the enforceability of these levers. Instead, those looking for quick results must start internally – with operational cash optimization. Today, companies achieve the greatest and most sustainable effect through a combination of both: first by optimizing internal processes to quickly release liquidity – and then through the targeted use of structured financing instruments such as supply chain finance to reinforce these effects and secure them in the long term.
Strategic working capital management is not about financial housekeeping, it’s about building velocity for change. In transformations, early results matter. They create belief, unblock budgets, and demonstrate the effectiveness of your roadmap.
Recent benchmarks by McKinsey Transformation show that top-quartile performers unlock up to 66% of their transformation value within the first 9 months. And many of those early gains come not from structural overhauls but from working capital improvements.
One European industrial manufacturer, for instance, unlocked €30 million in liquidity in just eight weeks by establishing a daily “Cash War Room” focused on resolving bottlenecks in billing, collections, and payables. These quick wins gave the CFO the credibility and funding to accelerate broader transformation.
Process Optimization: Get Faster, Smarter, Leaner
Case in point: a capital goods company reduced its average payable run rate by several million euros through a simple shift to weekly payment batching and strict invoice validation.
These improvements require no new systems, just better discipline and ownership.
Working capital performance cannot sit with finance alone.
High-impact organizations make cash a shared KPI across commercial, procurement, and operations. They establish cross-functional working capital committees and embed metrics like Net Working Capital (NWC), DSO, and inventory turnover into operational dashboards and performance reviews.
Sales teams, for example, are increasingly incentivized not just on revenue, but also on timely collections and customer payment behavior.
When ownership broadens, behavior shifts, and working capital turns from a passive metric into an active driver of transformation.
Digitalization is accelerating what’s possible:
The latter in particular are increasingly used to segment customer payment behavior and tailor dunning strategies, helping companies accelerate cash collection significantly while maintaining a positive customer experience.
While operational improvements generate powerful quick wins, they also create the foundation for more advanced, sustainable working capital solutions.
Supply Chain Finance (SCF) and Receivables Finance programs, when built on clean processes and reliable data, become scalable transformation engines.
At BASF, a strategic SCF program supports financial resilience amid industry disruption. “The Supply Chain Finance program is an important strategic instrument for driving change,” the treasury team noted, highlighting its role in reinforcing growth and safeguarding competitiveness.
Vattenfall, similarly, uses a Sustainable SCF model to finance its transition to renewable energy, connecting operational excellence with sustainability and supplier stability.
But here’s a critical insight: many SCF and receivables finance programs underperform or face delays because the operational groundwork hasn’t been laid. At CRX Markets, we’ve seen firsthand: that operational processes like slow invoice approval cycles or fragmented payment processes often become barriers to success.
That’s why operational excellence and structural solutions must work together. One fuels the other. You optimize processes to create the conditions for lasting impact, then scale that impact through strategic working capital financing tools.
Transformation isn’t just financial – it’s behavioral.
Working capital improvements stick when companies introduce a cash-conscious culture. That means:
Once embedded, this mindset elevates working capital from a tactical fix to a long-term strategic advantage.
“We don’t have the resources.”
Start with one or two focused initiatives. Gains come fast when the scope is narrow but the ownership is clear.
“Suppliers won’t tolerate longer terms.”
That’s precisely why we at CRX Markets see SCF as a collaborative approach ,to balance flexibility for buyers with early liquidity for suppliers. And when supplier engagement isn’t feasible or timing is tight, post-maturity financing solutions like our Supplier Payment Solution offer an effective alternative: enabling extended payment terms for buyers without involving suppliers directly.
“Our systems aren’t ready.”
Many improvements, like revised payment cycles or dispute resolution workflows, require only organizational will, not new technology.
Working capital is one of the few levers that builds transformation momentum without structural risk. It generates cash, accelerates belief, and demonstrates capability, fast.
It’s not just a financial tactic. It’s a strategic choice.
Don’t Miss This Opportunity
On August 19 we will joined by McKinsey Transformation to share proven strategies and practical insights for working capital optimization.
Register now for our webinar featuring McKinsey & Company.
Gain exclusive insights, real-world benchmarks, and proven working capital strategies to fuel your transformation.
